Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1887-09-07
UNDER NEW MANAGEMENT
SALE OF THE BALTIMORE & OHIO
ROAD TO A SYNDICATE.

The Announcement Is Made by Drexel,
Morgan B Co., and Is Authorization
Million Dollars To BE Put Into the Road
to Pay the Floating Debt-Tho Telegraph
Systcm-BusInsss Notes.
NEW YORK, Sept 5.-The important an
nouncement was made by Drexel, Morgan &
Co., Friday, that the Baltimore & Ohio rail-
way has been purchased by a syndicate, In
cluding Barring Bros, S. 8. Morgan & Co,
and Brown, Shipley & Co., Of London ;
Drsxel, Morgan & CO., Kidder, Peabody &
Co. and Brown Bros, Of New York. The
property is to be put under the management
of parties acceptable to the syndicats-pro-
badly ]. g. Cassatt vice president OF the
Pennsylvania railroad. All antagonisms are
to be removed and the road operated In
harmony with other trunk lines. The Syndi-
cate is to advance q loan OF $l0, 0oo, ,0OO to pay
the floating debt
1t Is alleged by other parties, who, how
ever, are not SO far as known in the confidence
Of the syndicate, that all the outside enter
prises are 10 be given up-the Western Union
probably taking the telegraph lines.
The Sun says: AS the Pennsylvania, the
Reading and the Jersey Central roads are
now all in accord, the chances ara that the
Baltimore &c Ohio traffic between Philadel-
phia and this city will be parcled out 50
that all will derive some benefit from it It
is reported that the freight business will be
lone over the Reading and Jersey Central
roads, and that the passenger traffic will be
handled by the Pennsylvania road. With
the view Of providing for the increase in its
traffic, the Jersey Central company will at
once four-track its road from Boundbrook to
Jersey City, and also build a
large and much.needed depot at
the last t-named point Thu Pennsylvania Is
proposing to meet the increasing demands
upon it by the work it is doing in Jersey
City, and it is likely that all of the roads
named will use the Staten island terminal
facilities for handling their through foreign
freight business.
As to the telegraph system Of the Baltimore
& Ohio company, it may be stated as a fact
that Mr.. Jay Gould has under consideration
a proposition for the transfer Of the system
to him or to the Western Union company for
q consideration equal to about one-half the
cost of the system as il is figured upon the
Baltimore & Ohio books-that is to say, it
has been offered to him at about So, 600, 900.
The offer does not include all the lines upon
the Baltimore & Ohio railroad, but provis-
ion is made for their operation similar to that
which Is made with other telegraph compa-
aies. Thus far the delay In closing this mat
ter has not been significant and the chances
that this negotiation will conclude with
sale ars regarded as favorable by those who
awacognizans Of thsm. 4
BALTIMORE, Md, Sept 5.-The mortgaging
of the Baltimore & Ohio railroad is the ab-
sorbing topic OF conversation on the streets,
and IN the exchanges here Mr.. J. Hall Pleas.
ants chairman Of the board Of trustees Of the
Johns Hopkins estate, which holds 1900
shares Of Baltimore q Ohio stock, said: Il
think tho present arrangement will put the
road on a moro substantial financial basis
than II has enjoyed during the past year, az
a new president will be chosen who can and
win devote his whole time and energy to it's
interests and development" E
German II. Hunt, of Poole & Hunt, thinks
the deal means that the Baltimore & Ohio is
out of trouble. He always held that Garrett
made . mistake in striving to reach Philadel-.
phia and New York, and that his efforts in
that direction involved it in financial straits
LONDON, Sept 5.-The settlement of the
Baltimore & Ohio deal has made a most IA
vorable impression on the stock board. Amer
lean stocks and bonds opened buoyant Satur-
day morning and advanced on a sharp buy
ing u to IL per cent They made further
slight advance about 1880 p m. on. the an
nouncement that 81 200, 600 had been engaged
for shipment TO New York. The details Of
the Baltimore & Ohio deal are anxiously
awaited by investors and speculators gener-
ally. A fseling of relief Is apparent among
dealers in American securities and not few
express their gratitude for the masterly man
nsr in which Msssrs. J. s. Morgan & Co car,
ried out the deal